Juniper Hotels has tepid listing

about 5 months ago
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A new listing today - Juniper Hotels and as has been the trend, this too was a tepid one. The company as against the IPO price Rs.360, it got listed at Rs.361 on the BSE. It is currently trading at an intraday high at Rs.397.30.

The IPO had received a  very dull response. The overall subscription was at 2.08x, HNIs portion was at 0.85x, QUIBs at 2.96x and Retail at 1.28x.

Juniper Hotels is a 50:50 joint venture between Kolkata-based Saraf Group and USD 14 billion Hyatt Hotels Corporation (held through Two Seas Holdings), being the only hotel development company in India, with strategic investment from Hyatt. Company has a portfolio of 7 ‘Hyatt’ hotels and serviced apartments aggregating to 1,836 keys, as of 30.9.23, comprising 20% of Hyatt inventory in India, including India’s largest luxury hotel 665-key Grand Hyatt Mumbai Hotel, accounting for over 50% of company’s Rs.667 cr revenue in FY23.

Our verdict for the IPO Analysis - Despite room addition plans, lower margins vis-à-vis peers and full-pricing is unexciting and hence we do not recommend applying in the IPO.

409.70 (+3.00)

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